For the year ended December 31, 2022, Crane Electrical Repair Company reports the following summary payroll data. Gross earnings: Administrative salaries $214,000 Electricians’ wages 362,000 Total $576,000 Deductions: FICA taxes $38,639 Federal income taxes withheld 187,500 State income taxes withheld (3%) 17,280 United Fund contributions payable 27,789 Health insurance premiums 19,500 Total $290,708 Crane’s payroll taxes are Social Security tax 6.2%, Medicare tax 1.45%, state unemployment 2.5% (due to a stable employment record), and 0.6% federal unemployment. Gross earnings subject to Social Security taxes of 6.2% total $488,500, and gross earnings subject to unemployment taxes total $150,000. No employee exceeds the $132,900 limit related to FICA taxes. (a) Prepare a summary journal entry at December 31 for the full year’s payroll. (b) Journalize the adjusting entry at December 31 to record the employer’s payroll taxes. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (c) The W-2 Wage and Tax Statement requires the following dollar data. Complete the required data for the following employees. (Round answers to 0 decimal places, e.g. 5,275.) Employee Wages, Tips, Other Compensation Federal Income Tax Withheld State Income Tax Withheld FICA Wages FICA Tax Withheld Maria Sandoval $60,000 $29,400 $enter a dollar amount $enter a dollar amount $enter a dollar amount Jennifer Mingenback 30,000 11,700 enter a dollar amount enter a dollar amount enter a dollar amount

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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For the year ended December 31, 2022, Crane Electrical Repair Company reports the following summary payroll data.

Gross earnings:
Administrative salaries		$214,000
Electricians’ wages		362,000
Total		$576,000
Deductions:
FICA taxes		$38,639
Federal income taxes withheld		187,500
State income taxes withheld (3%)		17,280
United Fund contributions payable		27,789
Health insurance premiums		19,500
Total		$290,708

Crane’s payroll taxes are Social Security tax 6.2%, Medicare tax 1.45%, state unemployment 2.5% (due to a stable employment record), and 0.6% federal unemployment. Gross earnings subject to Social Security taxes of 6.2% total $488,500, and gross earnings subject to unemployment taxes total $150,000. No employee exceeds the $132,900 limit related to FICA taxes.

(a)		Prepare a summary journal entry at December 31 for the full year’s payroll.
(b)		Journalize the adjusting entry at December 31 to record the employer’s payroll taxes.

(Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(c) The W-2 Wage and Tax Statement requires the following dollar data.

Complete the required data for the following employees. (Round answers to 0 decimal places, e.g. 5,275.)

Employee	Wages, Tips, Other Compensation	Federal Income Tax Withheld	State Income Tax Withheld	FICA Wages	FICA Tax Withheld
Maria Sandoval	$60,000	$29,400	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount
Jennifer Mingenback	30,000	11,700	enter a dollar amount	enter a dollar amount	enter a dollar amount

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